Moving into Design SYSTEMS ANALYSIS AND DESIGN, 6 TH EDITION DENNIS, WIXOM, AND ROTH © 2015 JOHN WILEY & SONS. ALL RIGHTS RESERVED. 1 Roberta M. Roth

Learning Objectives  Explain the initial transition from analysis to design.  Create a system specification.  Describe three ways to acquire a system: custom, packaged, and outsourced alternatives.  Create an alternative matrix. © 2015 JOHN WILEY & SONS. ALL RIGHTS RESERVED. 2

Transition from Requirements to Design BRIEF PREVIEW © 2015 JOHN WILEY & SONS. ALL RIGHTS RESERVED. 3

Key Ideas  In Systems Analysis we figure out… o What the business needs  In System Design we figure out… o How to build the system that fulfills those needs  All of the “logical” work from Systems Analysis is converted to the “physical” © 2015 JOHN WILEY & SONS. ALL RIGHTS RESERVED. 4

Key Definitions  Design phase o Decide how to build the system o Create system requirements that describe all technical details for building the system  System specification o Final deliverable from design phase o Conveys exactly what system the development team will implement during the implementation phase © 2015 JOHN WILEY & SONS. ALL RIGHTS RESERVED. 5

Design Phase Steps  Determine system acquisition strategy (make, buy, or outsource)  Determine the technical architecture for the system  Address security concerns and globalization issues  Make hardware and software selections  Determine the way that users will interact with the system (interface, inputs, and outputs)  Design the programs for the underlying processes  Design the way data will be stored  Create final deliverable - the system specification © 2015 JOHN WILEY & SONS. ALL RIGHTS RESERVED. 6

Elements of System Specification © 2015 JOHN WILEY & SONS. ALL RIGHTS RESERVED. 7

System Acquisition Strategies WHAT IS THE BEST WAY TO ACQUIRE THIS SYSTEM? © 2015 JOHN WILEY & SONS. ALL RIGHTS RESERVED. 8

Ways to Acquire a New System  Custom development (build from scratch) in-house  Purchase software package (and possibly customize it) o Install on our own computers, or o Obtain access from a software provider (host)  Outsource development to third party, who might o Build system from scratch for us, or o Purchase software for us, customize and install it © 2015 JOHN WILEY & SONS. ALL RIGHTS RESERVED. 9

Custom Development PROS  Get exactly what we want  New system built consistently with existing technology and standards  Build and retain technical skills and function knowledge in-house  Allows team flexibility and creativity  Unique solutions created for strategic advantage CONS  Requires significant time and effort  May add to existing backlogs  May require skills we do not have  Often costs more  Often takes more calendar time  Risk of project failure © 2015 JOHN WILEY & SONS. ALL RIGHTS RESERVED. 10

Purchased Software Packages (purchased or obtained from ASP or SaaS) PROS  No need to “reinvent the wheel” for common business needs  Tested, proven product  Cost savings  Time savings  Utilize vendors’ expertise  Some customization may be possible CONS  Rarely a perfect fit  Organizational processes must adapt to software  Reliance on vendor for maintenance and future enhancements  Won’t develop in-house functional and technical skills  Unique needs may go unmet  May require system integration © 2015 JOHN WILEY & SONS. ALL RIGHTS RESERVED. 11

Purchased Software  Application service providers (ASP) supply access to software on a pay-as-you-go basis  Many applications today are “in the cloud”… o ASP – provider hosts someone else’s software o SaaS – software vendor hosts its own software o Considerable savings – no hosting infrastructure needed; host provides everything  Risks include o Fear of losing confidential information o Performance © 2015 JOHN WILEY & SONS. ALL RIGHTS RESERVED. 12

Purchased Software  Analyze the vendor as well as the software functionality  Verify vendor claims with others  Look carefully at vendor support  Assess long-term viability of vendor as an on-going business o A new software company may have a great idea, but can they survive as a business over the long haul? o If the vendor is an acquisition target, what will happen to the product? © 2015 JOHN WILEY & SONS. ALL RIGHTS RESERVED. 13

Systems Integration  Building systems by combining packages, existing (legacy) systems, and custom software written for integration  Integrating data between various parts of the system is the key challenge  Many consultants specialize in systems integration © 2015 JOHN WILEY & SONS. ALL RIGHTS RESERVED. 14

Outsourced Development PROS  Hire expertise we don’t have  May save time and money  Lower risk CONS  No opportunity to build in-house expertise  Reliance on vendor  Future options limited  Security – potential loss of confidential information  Performance based on contract terms © 2015 JOHN WILEY & SONS. ALL RIGHTS RESERVED. 15

Outsourcing  Hiring an external vendor, developer, or service provider to supply the system  Can also obtain custom system created by outsourcer  Can reduce costs and/or add value (resources, experience)  Risks include o Losing confidential information o Losing control over future development o Losing learning opportunities © 2015 JOHN WILEY & SONS. ALL RIGHTS RESERVED. 16

Outsourcing Contracts  Time and arrangements  Fixed-price  Value-added © 2015 JOHN WILEY & SONS. ALL RIGHTS RESERVED

Outsourcing Guidelines  Keep lines of communication open  Define and stabilize requirements before signing the contract  View the relationship as a partnership  Select vendor, developer, or provider carefully  Assign someone to manage the relationship  Don’t outsource what you don’t understand  Emphasize flexible requirements, long-term relationships, and short-term contracts © 2015 JOHN WILEY & SONS. ALL RIGHTS RESERVED. 18

Influences on the Acquisition Strategy WHAT FACTORS DO WE CONSIDER? © 2015 JOHN WILEY & SONS. ALL RIGHTS RESERVED. 19

Acquisition Strategy Selection Factors © 2015 JOHN WILEY & SONS. ALL RIGHTS RESERVED. 20

Selecting an Acquisition Strategy HOW DO WE CHOOSE? © 2015 JOHN WILEY & SONS. ALL RIGHTS RESERVED. 21

Developing Our Options  Need to collect information o What tools and technologies are needed for a custom development project? o What vendors make products that address the project needs? o What service providers would be able to build this application if outsourced? © 2015 JOHN WILEY & SONS. ALL RIGHTS RESERVED. 22

Request for Proposals (RFP)  Solicits proposals from vendor, developer, or service provider  Explains the system to be built and criteria for selecting among applicants  Request for Information (RFI) -- a shorter and less detailed version  Request for Quote (RFQ) – use when you just need a price © 2015 JOHN WILEY & SONS. ALL RIGHTS RESERVED. 23

Request for Proposal Contents  Description of desired system  Special technical needs or circumstances  Evaluation criteria  Instructions on how to respond  Desired schedule  Other information that will help the submitter to make a more complete or accurate proposal © 2015 JOHN WILEY & SONS. ALL RIGHTS RESERVED. 24

Developing an Alternative Matrix  Combine several feasibility analyses into one matrix  Include technical, economic, and organizational feasibilities  Assign weights to indicate the relative importance of the criteria  Assign scores to indicate how well the alternative meets the criteria © 2015 JOHN WILEY & SONS. ALL RIGHTS RESERVED. 25

Sample Alternatives Matrix © 2015 JOHN WILEY & SONS. ALL RIGHTS RESERVED. 26

Tune Source Alternatives Matrix © 2015 JOHN WILEY & SONS. ALL RIGHTS RESERVED. 27